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Indirect Cost
(redirected from Indirect Expenses)

   Also found in: Encyclopedia, Wikipedia 0.01 sec.
Indirect Cost
A cost to a business that is not directly related to making a product. For example, market research is an indirect cost because, while it may assist in making decisions about production, it does not affect the production of any one unit. Another common indirect cost is the purchase of office supplies. Indirect costs are necessary to running a business. See also: Direct cost, Overhead.

indirect cost
A cost that is not directly related to the production of a specific good or service but that is indirectly related to a variety of goods or services. For example, the cost of administering a large company is an indirect cost that must be spread over a number of products or services. Also called overhead. Compare direct cost.


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February's earthquake in Chile cost the insurer about 200 million dollars, while the Gulf of Mexico oil spill came at a cost of 20 million dollars excluding indirect expenses, said Dieter Wemmer, chief financial officer.
Indirect expenses are those that cover running the entire home and are generally deductible up to the business use percentage you calculated previously.
Although the majority of absence is short term, the average cost to the employer, including direct and indirect expenses is currently a staggering pounds 800 per absent employee.
 
 
 
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